Bitcoin Crashes Hard! Highest Liquidation Level Since 2021 Seen! Here are the details

The cryptocurrency market experienced a significant shake with $1.5 billion in liquidation in the last 24 hours, also due to the Bitcoin price falling below the $95,000 threshold.

Crypto Liquidations Rise to $1.5 Billion as Bitcoin Drops Below $95,000

Settlements with Numbers

The data obtained from Coinglass reveals the following:

In this volatile period, approximately 514,400 investors faced liquidation.

Long positions, mostly with $1.38 billion in liquidation compared to $136.7 million worth of short positions.

Bitcoin liquidations totaled $163.4 million, while Ethereum saw $204.7 million in liquidations.

Bitcoin, while trading at $97,000 at the time of writing this article, fell to $94,150 during the night hours.

This incident comes after the liquidation of $1.1 billion, the largest since December 2021, which occurred on December 5. Analysts attribute these recent events to a 'leverage siphon' in which major shareholders are forced to exit their highly leveraged positions from the market.

Bitcoin recently reached a historic milestone by surpassing $100,000 for the first time on December 4th and reaching a peak of $103,679.

After Donald Trump was elected as the 47th President of the United States, the rally was fueled by optimism, and the markets were expecting a favorable regulatory environment for digital assets.

Sharp correction indicates high volatility and risk associated with cryptocurrency trading as traders and investors adapt to rapid market changes.